Information Technology in Peru

Hardware Manufacturing

Peru has very little IT hardware manufacturing. The U.S. Department of State estimated that the Peruvian market for telecommunications equipment in 1999 was $660.3 million, but that local production only accounted for $7.2 million of that figure. The vast majority of Peru's telecommunications equipment is imported, mainly from Spain, due to Telefónica's ownership of the incumbent fixed line network. Because of Telefónica's close relationship with its parent company in Spain, most telecommunication equipment imports come through Spain.(30) However, with the end of Telefónica's monopoly in 1999, it is likely that the newly registered service providers will either produce their equipment through partnerships and joint ventures in Peru, or would import them from other countries, particularly the U.S.

In general, most IT hardware produced in Peru is by foreign companies with subsidiaries or contractors within Peru. Through this knowledge transfer, Peruvians have the potential to learn the skills necessary to design and produce such equipment on their own, but it remains to be seen if this knowledge transfer is successful, and if the financial and institutional backing exists to support it.

Last update: December 15, 2000 by Jeffrey S. Bernstein.